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price
that which is given up in an exchange to acquire a good or servicemost flexible of the four P'scan be changed on short notice/no cost associated with it TERM 2
what must today's companies develop?
DEFINITION 2 specific, measurable, attainable pricing objectives if they want to thrive in highly competitive markets TERM 3
pricing objectives
DEFINITION 3 profit orientedsales orientedstatus quo TERM 4
profit oriented
DEFINITION 4 companies trying to make a quick buckselling to generate large revenues TERM 5
status quo
DEFINITION 5 if a companies pricing objective is to meet the competition or maintain existing prices
breakeven analysis
profit = expenseswhat sales volume must be reached TERM 7
bartering
DEFINITION 7 when goods/services are exchangedtrade for tradeno money involved TERM 8
elastic demand
DEFINITION 8 small change in price results in a significant increase in demandE is greater than one TERM 9
inelastic demand
DEFINITION 9 large change in price results in a smaller insignificant increase in demandE is less than one TERM 10
break-even volume in units
DEFINITION 10 = total fixed costs / contribution margin per unit where contribution margin is price-variable cost per unit
status quo pricing
charging a price identical to or very close to the competitors price TERM 17
bundling
DEFINITION 17 combining two or more products in a single packagesell product with accessories for a lower priceex: wii fit with balance board TERM 18
predatory pricing
DEFINITION 18 practice of charging a very low price for a product with the intent of driving competitors out of business or sometimes out of the market TERM 19
unfair trade practice act
DEFINITION 19 in US selling below the cost is illegalknown as dumping
